Can value tailwinds spur long-term recovery?

Value investors have been forced to endure a prolonged period of underperformance, as extreme market dislocations caused by central bank policies have boosted the appeal of growth counterparts.

According to research from Templeton Global Equity Group published last year, value had underperformed growth for the longest period on record and, as of the end of August 2015, was trading at the widest valuation discount to growth since the dotcom bubble of the late 1990s. The group said the "paltry" yields offered by government bonds have forced investors up the risk curve into higher-yielding debt securities or equities, with growth highly sought after. The prospects for value versus growth investing in 2016 However, it warned last year this situation cannot continue indefinite...